CICC: Maintains "Outperform Industry" rating on SAMSONITE (01910) with target price lowered to 25 Hong Kong dollars.

CICC released a research report stating that due to TUMI's positive mid-term prospects for expansion in Europe and Asia and the company's strict cost control, it maintains a "outperform industry" rating for SAMSONITE (01910), but lowers the target price by 11% to 25 Hong Kong dollars. SAMSONITE's net sales in the third quarter reached 878 million US dollars, down 6.8% year-on-year when calculated at a fixed exchange rate; adjusted EBITDA was 155 million US dollars; adjusted net profit was 79.7 million US dollars. The performance did not meet the bank's expectations, mainly due to the lower-than-expected performance in all regions, especially in Asia and North America. The bank stated that it essentially maintains its revenue forecasts for SAMSONITE in 2024 and 2025. Considering the lower-than-expected performance in Asia and North America and the negative impact of operating leverage, it lowers its net profit forecasts for 2024 and 2025 by 16% and 12% to 346 million US dollars and 394 million US dollars.